Smart phones cost far less than their suggested prices, thanks to carrier subsidization. That two-year contract you lock yourself into every time you pay $200 for a fancy phone? That’s how it’s $200 — because you’ve agreed to pay Verizon, AT&T, Sprint or T-Mobile $80-plus a month for the next two years. In return, you get an $800 phone for $200.

That’s why it’s important to not lose or damage your phone. Even though you paid $200 for it, it costs a lot more than $200 to replace if you’re not up for a contract renewal.

Aside from all that, this $800 rumor is pure speculation. If there’s a grain of truth to it, $800 is almost certainly the price of one of the models of phones when purchased without a contract. If any carrier tried to sell the new iPhone for $800 with a two-year contract, nobody would buy it.

Actually, don’t quote me on that. You never know with Apple stuff.

The new iPhone — whenever it comes out and whatever features it’s got — will be priced in line with other smart phones sold via wireless carriers in the U.S., though. That’s a given.